IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v251y2016i1p198-205.html
   My bibliography  Save this article

Patient choice analysis and demand prediction for a health care diagnostics company

Author

Listed:
  • Zhang, Yue
  • Liang, Liping
  • Liu, Emma
  • Chen, Chong
  • Atkins, Derek

Abstract

This paper describes a case study for a medical diagnostic laboratory service provider to model the behavior of patients when choosing a patient service centre for their medical tests and to estimate future demand volume. A tool developed based on our methodology allows the management of the diagnostic services to experiment with locations and capacities for locating or relocating service centres. In addition to the focal firm, the methodology considers the impact of decisions on another service provider and hospital laboratories located in the same area. The methodology identifies the most significant service centre attractiveness factors. Our models are validated from different perspectives and show good predictive capability. This case study is used to draw a number of lessons for applying these types of models to other similar services in order to assist other applications.

Suggested Citation

  • Zhang, Yue & Liang, Liping & Liu, Emma & Chen, Chong & Atkins, Derek, 2016. "Patient choice analysis and demand prediction for a health care diagnostics company," European Journal of Operational Research, Elsevier, vol. 251(1), pages 198-205.
    • Handle: RePEc:eee:ejores:v:251:y:2016:i:1:p:198-205
    DOI: 10.1016/j.ejor.2015.10.055
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377221715009819
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ejor.2015.10.055?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. ReVelle, C. S. & Eiselt, H. A., 2005. "Location analysis: A synthesis and survey," European Journal of Operational Research, Elsevier, vol. 165(1), pages 1-19, August.
    2. Klose, Andreas & Drexl, Andreas, 2005. "Facility location models for distribution system design," European Journal of Operational Research, Elsevier, vol. 162(1), pages 4-29, April.
    3. Qian Wang & Rajan Batta & Christopher Rump, 2002. "Algorithms for a Facility Location Problem with Stochastic Customer Demand and Immobile Servers," Annals of Operations Research, Springer, vol. 111(1), pages 17-34, March.
    4. Peter Sivey, 2012. "The effect of waiting time and distance on hospital choice for English cataract patients," Health Economics, John Wiley & Sons, Ltd., vol. 21(4), pages 444-456, April.
    5. Vedat Verter & Sophie Lapierre, 2002. "Location of Preventive Health Care Facilities," Annals of Operations Research, Springer, vol. 110(1), pages 123-132, February.
    6. Yue Zhang & Oded Berman & Patrice Marcotte & Vedat Verter, 2010. "A bilevel model for preventive healthcare facility network design with congestion," IISE Transactions, Taylor & Francis Journals, vol. 42(12), pages 865-880.
    7. Boffey, Brian & Galvao, Roberto & Espejo, Luis, 2007. "A review of congestion models in the location of facilities with immobile servers," European Journal of Operational Research, Elsevier, vol. 178(3), pages 643-662, May.
    8. Zhang, Yue & Berman, Oded & Verter, Vedat, 2009. "Incorporating congestion in preventive healthcare facility network design," European Journal of Operational Research, Elsevier, vol. 198(3), pages 922-935, November.
    9. Haase, Knut & Müller, Sven, 2014. "A comparison of linear reformulations for multinomial logit choice probabilities in facility location models," European Journal of Operational Research, Elsevier, vol. 232(3), pages 689-691.
    10. Marianov, Vladimir & Rí­os, Miguel & Icaza, Manuel José, 2008. "Facility location for market capture when users rank facilities by shorter travel and waiting times," European Journal of Operational Research, Elsevier, vol. 191(1), pages 32-44, November.
    11. Benati, Stefano & Hansen, Pierre, 2002. "The maximum capture problem with random utilities: Problem formulation and algorithms," European Journal of Operational Research, Elsevier, vol. 143(3), pages 518-530, December.
    12. Tammy Drezner & Zvi Drezner, 2002. "Validating the Gravity-Based Competitive Location Model Using Inferred Attractiveness," Annals of Operations Research, Springer, vol. 111(1), pages 227-237, March.
    13. Aboolian, Robert & Berman, Oded & Krass, Dmitry, 2007. "Competitive facility location and design problem," European Journal of Operational Research, Elsevier, vol. 182(1), pages 40-62, October.
    14. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
    15. David R. Bell & James M. Lattin, 1998. "Shopping Behavior and Consumer Preference for Store Price Format: Why “Large Basket” Shoppers Prefer EDLP," Marketing Science, INFORMS, vol. 17(1), pages 66-88.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. LeBlanc, Larry J. & Grossman, Thomas A. & Bartolacci, Michael R., 2019. "Ensuring scalability and reusability of spreadsheet linear programming models," Omega, Elsevier, vol. 84(C), pages 55-69.
    2. Kyosang Hwang & Tooba Binte Asif & Taesik Lee, 2022. "Choice-driven location-allocation model for healthcare facility location problem," Flexible Services and Manufacturing Journal, Springer, vol. 34(4), pages 1040-1065, December.
    3. Jinli Duan & Feng Jiao & Qishan Zhang & Zhibin Lin, 2017. "Predicting Urban Medical Services Demand in China: An Improved Grey Markov Chain Model by Taylor Approximation," IJERPH, MDPI, vol. 14(8), pages 1-12, August.
    4. Zhang, Yue & Atkins, Derek, 2019. "Medical facility network design: User-choice and system-optimal models," European Journal of Operational Research, Elsevier, vol. 273(1), pages 305-319.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ralf Krohn & Sven Müller & Knut Haase, 2021. "Preventive healthcare facility location planning with quality-conscious clients," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 43(1), pages 59-87, March.
    2. Zhang, Yue, 2015. "Designing a retail store network with strategic pricing in a competitive environment," International Journal of Production Economics, Elsevier, vol. 159(C), pages 265-273.
    3. Robert Aboolian & Oded Berman & Dmitry Krass, 2012. "Profit Maximizing Distributed Service System Design with Congestion and Elastic Demand," Transportation Science, INFORMS, vol. 46(2), pages 247-261, May.
    4. Teodora Dan & Patrice Marcotte, 2019. "Competitive Facility Location with Selfish Users and Queues," Operations Research, INFORMS, vol. 67(2), pages 479-497, March.
    5. Derya Celik Turkoglu & Mujde Erol Genevois, 2020. "A comparative survey of service facility location problems," Annals of Operations Research, Springer, vol. 292(1), pages 399-468, September.
    6. Navneet Vidyarthi & Onur Kuzgunkaya, 2015. "The impact of directed choice on the design of preventive healthcare facility network under congestion," Health Care Management Science, Springer, vol. 18(4), pages 459-474, December.
    7. Haase, Knut & Hoppe, Mirko, 2008. "Standortplanung unter Wettbewerb - Teil 1: Grundlagen," Discussion Papers 2/2008, Technische Universität Dresden, "Friedrich List" Faculty of Transport and Traffic Sciences, Institute of Transport and Economics.
    8. Dong-Guen Kim & Yeong-Dae Kim, 2013. "A Lagrangian heuristic algorithm for a public healthcare facility location problem," Annals of Operations Research, Springer, vol. 206(1), pages 221-240, July.
    9. Kerim Dogan & Mumtaz Karatas & Ertan Yakici, 2020. "A model for locating preventive health care facilities," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 28(3), pages 1091-1121, September.
    10. Cornelia Schön & Pratibha Saini, 2018. "Market-Oriented Service Network Design When Demand is Sensitive to Congestion," Transportation Science, INFORMS, vol. 52(5), pages 1253-1275, October.
    11. Maryam Radman & Kourosh Eshghi, 2018. "Designing a multi-service healthcare network based on the impact of patients’ flow among medical services," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 40(3), pages 637-678, July.
    12. Hoon Jang, 2019. "Designing capacity rollout plan for neonatal care service system in Korea," OR Spectrum: Quantitative Approaches in Management, Springer;Gesellschaft für Operations Research e.V., vol. 41(3), pages 809-830, September.
    13. Jang, Hoon & Lee, Jun-Ho, 2019. "A hierarchical location model for determining capacities of neonatal intensive care units in Korea," Socio-Economic Planning Sciences, Elsevier, vol. 68(C).
    14. Vidyarthi, Navneet & Jayaswal, Sachin, 2013. "Efficient Solution of a Class of Location-Allocation Problems with Stochastic Demand and Congestion," IIMA Working Papers WP2013-11-03, Indian Institute of Management Ahmedabad, Research and Publication Department.
    15. Zetina, Carlos Armando & Contreras, Ivan & Cordeau, Jean-François, 2019. "Profit-oriented fixed-charge network design with elastic demand," Transportation Research Part B: Methodological, Elsevier, vol. 127(C), pages 1-19.
    16. Klein, Michael G. & Verter, Vedat & Moses, Brian G., 2020. "Designing a rural network of dialysis facilities," European Journal of Operational Research, Elsevier, vol. 282(3), pages 1088-1100.
    17. Lin, Yun Hui & Tian, Qingyun, 2021. "Branch-and-cut approach based on generalized benders decomposition for facility location with limited choice rule," European Journal of Operational Research, Elsevier, vol. 293(1), pages 109-119.
    18. S Rezapour & R Zanjirani Farahani & T Drezner, 2011. "Strategic design of competing supply chain networks for inelastic demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(10), pages 1784-1795, October.
    19. Küçükaydin, Hande & Aras, Necati & Kuban AltInel, I., 2011. "Competitive facility location problem with attractiveness adjustment of the follower: A bilevel programming model and its solution," European Journal of Operational Research, Elsevier, vol. 208(3), pages 206-220, February.
    20. Soheil Davari & Kemal Kilic & Gurdal Ertek, 2015. "Fuzzy bi-objective preventive health care network design," Health Care Management Science, Springer, vol. 18(3), pages 303-317, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:251:y:2016:i:1:p:198-205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.